Do you report income in the year in was earned or the year payment was received?

[yensuahte]

As an independent contractor, I did work and sent an invoice in December of 2022. The invoice wasn't paid until mid-January of 2023. Does this count as 2022 income?

[VolvoGirl · Accepted solution]

If you are a cash basis taxpayer (most are) you report the income when you receive it and expenses when you pay it.  So it would go on next year's 2023 return.